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March 5, 2013  Tue 10:18 AM CT

IGT: SEE CHART GET CHAIN FIND STRATEGIES
A large call trade dominates today's option activity in International Game Technology as its shares climb.

optionMONSTER systems show that a trader bought 3,000 July 16 calls for $1.73 against open interest of 3,578 contracts. At the same time, he or she sold 5,000 July 18 calls for the bid price of $0.80 in volume above the open interest in that strike, so that is a position.

This could be a new call spread looking to profit if IGT rallies to $18 but not much beyond. Alternatively, the trader could be rolling a short-call position to a higher strike and increasing its size, possibly part of a covered call strategy. (See our Education section)

IGT is up 0.84 percent to $16.65, approaching the levels of a month ago. The company, which makes casino-game machines, has been trending higher since gapping lower on earnings results in July and bouncing off support at $11.

About 8,800 IGT options have changed hands in the session so far, already about 3 times its daily average for the last month. 
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Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

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